Tony Dennis is either brave, foolish or simply playing the role of enthusiastic salesman. It may be a case of all three. The executive vice president of CityCenter Residences recently revealed more price reductions at CityCenter’s Veer and Mandarin Oriental towers—another 10 percent in addition to the 30 percent clipped upon opening in 2010, plus cash incentives like paid taxes and HOA fees reaching another 15 percent over time.
He is also saying the condo high-rise market has hit bottom—a declaration many have made in the past few years. With prices for a 782-square-foot one-bedroom at Veer now starting at $389,000 and Mandarin Oriental’s 1,105-square-foot one-bedroom starting at $849,000, CityCenter’s residential units are down about 48 percent from their initial price.
Having sold only two units in the first quarter of 2012, Dennis and his team are paddling upstream in the condo high-rise sales world. Plenty of underwater units are still on foreclosure watch, wreaking havoc on the true supply-demand equation.
Between the two towers, 602 units remain to be sold, and 430 of them have tenants in them. (CityCenter went the route of rentals when condos weren’t moving.) The rented units offer the incentive of immediate cash flow.
Time will tell if the CityCenter price cuts are the acts of market-bottom confidence or just a little more desperation on a real-estate terrain that still has further to sink.